Malaysia unveils ambitious $185b 5-year plan to reshape economy

Aim is to boost digitalisation, development in AI and high-growth, high-value sectors

- Azril Annuar

KUALA LUMPUR - Prime Minister Anwar Ibrahim on July 31 unveiled a RM611 billion (S$185 billion) five-year blueprint for the country, the biggest ever, with an ambitious aim to boost digitalisation, artificial intelligence development and further developing high-growth, high-value industries.

Under the 13th Malaysia Plan (2026-2030), the economy is projected to grow by 4.5 per cent to 5.5 per cent a year, he announced in Parliament. This is slightly higher than the 3.7 per cent year-on-year expansion in 2023, and 5.1 per cent in 2024. Gross domestic product (GDP) is expected to grow by 4 per cent to 4.8 per cent in 2025.

The previous five-year blueprint, 2021-2025, had total investment allocation of RM400 billion, meaning the new plan promises to channel 53 per cent more funds, as Malaysia faces global economic headwinds including looming tariffs on domestic exports to be imposed by the United States.

"This plan is not merely rhetoric," Datuk Seri Anwar said in his speech. "Rather, the government has set measurable targets for success in terms of economic figures to guide and monitor the work that will be carried out."

The speech was punctuated by cries of "Kekal Anwar" (Retain Anwar) by several government backbenchers, in an obvious counterpunch to last weekend's Turun Anwar (Anwar Resign) street rally organised by the opposition parties that attracted some 20,000 people.